[Amended 2-28-2012 by Bill No. 2012-05; 5-22-2013 by Bill No. 2013-07; 9-19-2023 by Bill No. 2023-06[1]]
A.
Purchasing and procurement.
(1)
Purchasing and procurement authority designated. The Chief of Purchasing shall be responsible for purchasing or contracting for all supplies and contractual services required by using departments, except those specifically exempted in writing by the County Commissioners.
(2)
Unlawful purchases or procurements. It shall be unlawful for any officer or employee to purchase, contract or order any equipment, supplies or services except as authorized by the Chief of Purchasing or through the procedures defined herein, and the County shall not be responsible for payment for any such unauthorized purchase or procurement.
B.
Formal procurement. Unless otherwise provided by law or by these policies, all purchases or procurements with an aggregate value exceeding $50,000 shall be made by formal procurement. All solicitations for formal procurement shall be advertised and posted pursuant to state and/or federal law. Full opportunity to participate shall be granted to all qualified responsive and responsible vendors. Formal procurements shall be publicly advertised as specified in County purchasing guidelines.
C.
Debarred/suspended. Vendors may be debarred or suspended from participating in County procurement by the Chief of Purchasing for any of the following reasons:
(1)
Refusal or failure to timely execute a contract awarded as a result of a formal procurement and/or fully comply with all requirements of a formal procurement solicitation.
(2)
A contractor, who has executed a contract with the County, may be considered to have defaulted in the performance of the contract, by: failure to comply with the requirements of the contract, substandard performance, failing to complete the contract, and/or by other significant errors and omissions.
(3)
If they have been suspended or debarred by any County, state or federal procurement authority.
(4)
For other reasons as specified in County purchasing guidelines.
D.
Joint or cooperative purchases and procurements. The Chief of Purchasing may engage in programs involving joint or cooperative purchases and procurements with other public jurisdictions, including independent agencies operating under state law, the State of Maryland, other counties and municipalities and volunteer fire departments and rescue squads of these jurisdictions. The Chief of Purchasing may utilize formal bid contracts established by these jurisdictions when beneficial to the County. This may be accomplished without specific Board approval for individual transactions.
E.
Unit cost contracts. Unit cost contracts may be issued covering indeterminate requirements of specific commodities and services where the unit cost for the commodities or services is determined through competitive bidding procedures and agreed upon at the beginning of the contract period. The exact quantity to be purchased may be unknown. All unit cost contracts shall include instructions as to release format, item limitations, dollar limitations per purchase, if applicable, pricing provisions and billing instructions. The Chief of Purchasing shall make available to all using agencies information detailing the provisions and pricing of unit cost contracts.
F.
Emergency and sole source procurement. Emergency or sole source procurement may be used in the following instances:
(1)
Emergency purchase is necessary. An emergency shall be deemed to exist when:
(2)
Supplies or services are proprietary in nature.
(3)
When competition is precluded because of secret manufacturing processes or patent and/or copyrights and control of basic raw materials which are only available from a single sole source and no equivalent processes, products, services or materials can reasonably be obtained.
(4)
When competition has been unsuccessfully attempted. In such case, the Chief of Purchasing shall document the firms and individuals contacted and the date of such contact.
(5)
In cases where no bids are received, or only a single bid is received, in response to formal advertising.
(6)
In circumstances when it is impracticable and/or in the best interest of the County.
G.
Competitive pricing. Whenever practicable, it shall be the policy of the Purchasing Division to secure adequate competition to assure that the purchase or procurement is made at the lowest possible cost consistent with the quality and delivery requirements of the using agency and the provisions of this section. Competitive pricing shall be obtained and at least three quotes documented in all transactions estimated to result in expenditures of $5,000 to $50,000. If three quotes cannot be obtained, information shall be documented in the file to that effect. Verbal quotes or written quotes may be utilized.
H.
Small procurement cards. Small procurement cards may be issued covering indeterminate requirements of commodities and services. This system is to provide an expeditious means of obtaining incidental items as needed. Small procurement cards are limited to $2,500 per purchase. All small procurement cards shall include instructions to the vendor as to release format, item limitations, if applicable, dollar limitations, billing instructions and identification of persons expressly authorized to conduct such orders. Employees authorized to purchase under the small procurement card procedures are provided with identification cards, which are issued by and may be rescinded by the Chief of Purchasing. Small procurement cards must be turned in to Purchasing upon the termination of employment of the cardholder or employee becomes ineligible for card.
I.
Requisitions. The purchase requisition or online request shall be used in all cases as an instrument for requesting contractual services or commodities. Requisitions shall be approved by the appropriate authorized department personnel prior to submitting to Purchasing. Requisitions with incomplete or inaccurate information shall be rejected by Purchasing.
J.
Purchase orders. Purchase orders shall not be prepared without a substantiating, approved requisition from the using department. All purchases greater than $2,500, unless excepted, shall be prepared on a purchase order form, except for long-term supply contracts and small dollar purchases, which may be accomplished via other methods described herein. In the instance of long-term supply contracts or formal procurement, the vendor shall be notified of County intent to award.
K.
Verification of funds prior to purchase required. Except for emergency purchases, no purchase exceeding $2,500 shall be made until the availability of funds for the designated purpose is verified and purchase order issued.
L.
Negotiations with vendors. No officer or employee of the County shall negotiate directly or indirectly with any vendor except with the approval of the Chief of Purchasing. Contact with employees in using departments by suppliers' representatives should be through or with the knowledge of the Chief of Purchasing. The Chief of Purchasing or designee may enter negotiations with vendors or request clarifications.
M.
Communications with vendors. Insofar as possible or practical, any communications with vendors should be in writing to avoid misunderstandings and to provide an historical file.
N.
Purchases considered as possible conflicts of interest. Purchases of supplies, materials or services from a member of the governing body of Charles County or from members of his or her immediate family; or from any other officer or employee of the County or members of his or her immediate family; or from any member or employee of a commission, board or corporation controlled or appointed by the Commissioners or from members of his or her immediate family shall be documented to provide a record for the public establishing that the purchase was made in the best interest of the County, price and other factors considered. All such purchasing activity must comply with the provisions of the Charles County Code of Ethics, Chapter 170 of the Code of Charles County.
O.
Purchases of capital assets. Purchases of capital assets, items with a useful life exceeding three years and costing $5,000 or more, shall require capital asset designation in addition to the purchase order. Trade-ins of assets shall be performed by the Chief of Purchasing only, and should only be done if the Chief of Purchasing can demonstrate that it is highly probable that this would provide a better economic value than if the asset were auctioned. Trade-ins also require the approval of the Chief of Purchasing or designee. Rental/purchase arrangements shall be reviewed by the Chief of Purchasing or designee, and approved in advance, similar to other capital purchases. Purchases of used assets must be specifically approved by the Chief of Purchasing or designee.
P.
Public availability of pricing information. Prices obtained through open competition and quotations are available to the public with written request to the Chief of Purchasing in accordance with County, state, and/or federal law, as applicable.
Q.
Purchasing and procurement standards.
(1)
Preferential purchasing and contracts prohibited. Except as approved by this section, it is not permissible to favor any particular individual or firm with orders or to give vendors information which will give anyone advantage over others seeking County business.
(2)
Local purchases and contracts. Unless otherwise provided by this section or by other applicable law, purchasing of goods or services from vendors whose principal place of business is physically located in Charles County is considered in the best interest of the County, provided that cost, quality, specifications and delivery are deemed equivalent. In the event that these provisions cannot be met, it then shall be considered in the County's interest to procure from a vendor whose principal place of business is located in the State of Maryland.
(3)
Small Local Business Enterprise Program. This section establishes the Small Local Business Enterprise (SLBE) Program. Under this program, preference may be given to Charles County Small Businesses which qualify pursuant to the provisions of this section and become registered in the program. Preferences utilized shall include, but may not necessarily be limited to, a percentage preference applied to bids/quotes, preference points applied to proposal evaluations, and a small local business reserve. The Small, Local, and Minority Business Enterprise Programs Division shall administer the SLBE Program and such processes, procedures and guidelines for using departments and vendors necessary for the efficient administration of the program.
(a)
The initial preference percentages, evaluation points, reserve level and caps shall be established by Commissioner resolution and shall be part of and incorporated into this section by reference. Future modifications, if any, to these parameters, or the definition of a local business, shall be by resolution of the County Commissioners.
(b) BROKER[1] [a] [b] [c] [2] LOCAL BUSINESS SMALL BUSINESS SMALL LOCAL BUSINESS SMALL LOCAL BUSINESS RESERVE
Definitions. In this section, the following words have the meanings indicated:
A person that conducts business (other than real estate, investment, or insurance sales) on a pass-through basis and with respect to:
Supplies:
Does not own, operate, or maintain a place of business in which supplies of the general character required under the contract are kept in stock in the regular course of business;
Does not regularly assume physical custody or possession of supplies of comparable character to those offered to the County; or
Exclusively acts as a middleman in the provision of supplies offered to the County; or
Services: does not regularly maintain the capability, capacity, training, experience, and applicable regulatory licensing to directly perform the principal tasks of a contract with the County, and acquires the services elsewhere, for the benefit of the County.
A business in Charles County that has:
A business that is certified and maintains its certification in the State of Maryland Small Business Reserve Program.
A for-profit business, other than a broker, that meets the definitions and criteria for both a small and local business under this section.
Those procurements that are limited to responses from local small businesses as defined herein and which do not exceed informal bid limits as may be adopted and modified from time to time by the County Commissioners.
(c)
Small local business eligibility.
[1]
A small local business shall be certified in the State of Maryland Small Business Reserve (SBR) Program, shall maintain that certification and shall comply with all provisions of the state program, including annual recertification.
[2]
In addition to obtaining and maintaining certification in the state program, a small local business shall meet all additional County program requirements at the time of the submission in order to be eligible for any SLBE program preference.
[3]
A small local business is no longer eligible to participate in the program when:
[a]
The business has received more than $3 million in awards within any sixty-month period based upon their SLBE status either as a prime contractor or a subcontractor; or
[b]
The business exceeds the maximum annual gross sales or maximum number of employees established in the criteria for certification in the Maryland Small Business Reserve Program; or
[c]
No longer complies with the definition of a local business.
(4)
Discontinuation of Maryland Small Business Reserve Program. In the event the State of Maryland discontinues its Small Business Reserve Program, the County Small Local Business Enterprise Program shall continue under the last small business reserve gross sales, employee and other criteria in effect at the time of the termination of the state program and the Small, Local, and Minority Business Enterprise Programs Division shall establish procedures to implement and maintain an equivalent small business certification process to that of the state program.
(5)
Exclusions. In addition to the exclusions contained in the aforementioned resolution, the President of the County Commissioners may waive the application of this section to a specific purchase if it conflicts with the overall objectives and responsibilities of this chapter or would be contrary to the best interests of the County.
(6)
Enforceability. This section does not give any person, including a small local business, any right or status, including standing, to challenge the award of a contract or subcontract under the County procurement system.
(7)
Penalties. A person must not willfully make a false statement to a County employee for the purpose of obtaining eligibility in the Small Local Business Enterprise Program under this section or fraudulently obtain, or attempt to obtain, or aid another person in fraudulently obtaining or attempting to obtain a contract or funds to which the person is not entitled to under this section. A violation of this section shall be deemed to constitute a material breach of any contract awarded by the County and the Purchasing Division may terminate the contract or exercise any other appropriate remedy available to it. In addition, any person or firm found to have violated these provisions may be disqualified by the Purchasing Division from doing business with the County for up to two years.
R.
Maintenance of files and records. Complete files are to be maintained in the Purchasing Division consisting of at least the following:
S.
Violations of policies and procedures. The Director of Fiscal and Administrative Services shall immediately report to the County Administrator the following for administrative action or referral to the County Attorney:
(1)
Any violations of purchasing and procurement policies.
(2)
Any situation where a vendor is not responsive or cooperative in providing requested information or invoices after reasonable attempts to secure same have been made.
(3)
Any unusual delays in awarding contracts due to nonresponsiveness of using agencies.
(4)
Abuse of the emergency purchase order system by a particular employee, division or department/agency.
(5)
Capital purchases, not properly charged to capital outlay or preapproved by the County Administrator.
[1]
Editor's Note: This bill provided that it shall take effect 7-1-2024.